Empirical Analysis Of The Effects Of Environmental Regulations

In recent years,environmental problems have been plaguing our country, especially the emergence of fog and haze which attracted more attention. According to the principle of economics, environmental problems are due to externality, public goods and other market failures. Therefore, relying on the market is unable to solve, only through the government regulation can be improved. To solve the variety of environmental problems,the government has taken various environmental regulations and policies which mainly divided into command and control policies, market incentive policies and information disclosure policies three categories. However, water pollution and air pollution problems in all regions still not been effectively resolved. Whether all kinds of environmental regulation policies on the government play the desired role in resolving pollution and which environmental regulation policies effect more clearly on sewage and waste gas emissions is the center of this study.According to the Environmental Kuznets curve, economic development mainly through three effects to impact the quality of the environment, so in the effects of government environmental regulation policies for empirical analysis, we must consider the impact of these non-policy factors. There is a multi-agency relationship which exist a large of information asymmetry in environmental regulation policy implementation process, so it is easy to cause the "moral risk"-- the agent`s behavior deviates from the principal goals what can reduce the effect of the implementation of environmental policies. To reduce the possibility of the agent’s moral hazard. We need to set up effective incentive and supervision mechanism. In the empirical analysis of the various environmental regulation policy effect, we need to consider the incentive and supervision which plays the role in the environmental regulation. The above analysis provides a new way to test the effect of environmental regulation policies. Controlling the non-policy factors in Environmental Kuznets curve mentioned, from the perspective of incentives and supervision to make empirical analysis of the environmental regulation policy effects, analysis from the national view to distinguish the eastern, central region, Western and northeastern four region. Comprehensive analysis of all kinds of environmental regulation policies playingthe role in different regions to reduce pollutant emission intensity.Using the provincial panel data, this paper tests the effects of environmental regulations with a random effects model. The results show that China’s environmental regulations generally played a positive role. Pollution charges and information disclosure policies have been effective in providing incentives to reduce emission intensity, and supervision played an important role in the enforcement of environmental regulations.However, investment in treatment of industrial pollution had no significant effect. Various environmental regulation policies play the role of reducing different pollutant emission intensity in the regions which is identical to the country. But the incentive effect of the different pollutant emission intensity is different among regions. This phenomenon may be relate to the pollution of the region, and the strength of policy implementation. Economic development and structure optimization could reduce emission intensity, but FDI had an opposite effect. Suggests are given based on these conclusions.